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Shortage and high LDPE prices remain in the Russian market in October

November 01/2013

MOSCOW (MRC) -- September scheduled outages at low density polyethylene (LDPE) production led to higher prices in the Russian market. A shortage of polyethylene (PE) has remained in October, despite stable operations at the plants, prices also remained high, according to ICIS-MRC Price report.

Scheduled shutdowns at LDPE production at Kazanorgsintez and Ufaorgsintez in September led to a shortage in the market. There was no outages in October with the exception of Ufaorgsintez. But, the shortage of PE, as well as a high price level, remained in the Russian market.

The LDPE 108 market accounted for the accutest shortage in supply during the whole month. The main reasons were low capacity utilisation at Ufaorgsintez (maintenance works and a shortage of feedstock because of outages for  turnarounds at local gas processing plants - GPPs) and Angarsk Polymer Plant"s high PE prices (Rb57,500/tonne FCA Angarsk, including VAT). Prices for PE 108 were in the range of Rb59,200-61,500/tonne CPT Moscow, including VAT, in the last week of October.

Price offers for Russian LDPE 158 were in a quite wide range of Rb59,000-62,000/tonne CPT Moscow, including VAT, in the last week of October. Offers for Belarusian PE were absent because of a scheduled shutdown for a turnaround at Polymir.

Supply was excessive and demand was weak in the shrinkable film PE market because of a seasonal factor. PE prices were in the range of Rb61,000-62,500/tonne CPT Moscow, including VAT.

Ufaorgsintez has finished all the maintenance works and has reached the designed capacity by November. Belarusian Polymir has resumed production of LDPE 158, which is expected to be shipped to the Russian market in the near future. But, major changes are unlikely to take place in the market in the first decade of November.

The leading Russian LDPE producers - Kazanorgsintez and Tomskneftekhim - increased their exports more than twice in October after September decline on the back of higher prices in foreign market. Large sales of Russian PE are also expected in November, which will sustain a lack of demand in the domestic market.
Author:Margaret Volkova
Tags:PE, LDPE, Tomskneftekhim, Angarsk Polymers Plant, Kazanorgsyntez, Polymir, Ufaorgsyntez, Russia.
Category:General News
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